National Central Cooling : Integrated report for the year 2021

Annual Report

2021

tabreed.ae

1	Chairman's Message	2
2	CEO's Message	6
3	Tabreed at a Glance	10
4	Performance Highlights	28
5	Overview - Historical Highlights	34
6	Board of Directors	42
7 Board of Directors' Report	54
8	Independent Auditor's Report	62
9	Financial Statements	72
10 Corporate Governance Report	174
11	Sustainability Report	242

38	Annual Report 2021 | 1

1

2	Annual Report 2021 | 3

Tabreed is a company that's more relevant than ever - built on an unswerving pursuit of excellence, with agility, progress and sustainability as central tenets in all our operations. The world is rapidly changing and this company's unrivalled expertise in energy efficiency will undoubtedly see it go from strength- to-strength. The continued success of Tabreed is entirely deserved

During 2020, Tabreed experienced unprecedented growth, resulting from an intense programme of high-profile investments in Abu Dhabi and Dubai. We continued to evolve throughout 2021, reaping the benefits of that expansion and taking the opportunity to relaunch our corporate image with a spectacular, headline- grabbing public unveiling against the Burj Khalifa, which happens to be cooled by us. A springboard, the opening of a new and exciting chapter in the story of Tabreed was an undoubted highlight of the year.

Our annual report shows a company that surpasses expectations and continues to deliver exceptional value to its stakeholders and customers alike. During 2021, group revenue increased to AED 1.95 billion - a 12% increase compared to our 2020 performance. Core chilled water revenue also increased by 12% to AED

1. billion and EBITDA increased by 7% to AED

1. billion, the results of honing and refining our operations, along with prudent financial planning.

Another highlight for Tabreed during 2021 was the appointment, in May, of Khalid Al Marzooqi as CEO. His methodical approach to business stems from his many years in senior management in some of the UAE's most respected organisations and, more recently, as Chief Operating Officer at Dolphin Energy Limited. I am pleased to see the positive impact his leadership has had on the company and its future plans, of which there are many.

We are more agile than ever, ready to make the right strategic investments in new assets while maintaining our existing portfolio and expanding our array of services. More than a district cooling utilities provider, we are leading experts in energy

efficiency and possess unrivalled knowledge that is being put to good use across multiple industries to achieve meaningful, impactful reductions in energy consumption, harmful emissions and financial outlay.

Our operations are approximately 50% more efficient than traditional cooling and, during 2021, Tabreed prevented the release of of 1.39 million metric tons of CO2 into the atmosphere, equivalent to removing 302,592 vehicles from our roads - a record each of us is incredibly proud of. Tabreed also published its first ESG report, providing greater transparency than ever into its operations and highlighting its unwavering focus on energy efficiency and operational excellence. As for expansion plans, we need look no further than the strategic partnership Tabreed entered with the International Finance Corporation (IFC) during 2021. This was a significant development, joining us with the largest global development institution focused on the private sector in emerging markets, to invest in projects of up to $400 million over the next five years, targeting a portfolio of approximately 100,000 refrigeration tonnes (RT) across India.

As has been said many times, Tabreed is a power for good. What we do brings enormous benefits to our customers, our communities and the environment we all share. Our commitment to energy efficiency will assist this country others to meet carbon reduction targets by reducing the amount of energy consumed while providing cooling services that are undoubtedly essential for life.

Our financial results for 2021 show that we are on the right path, that our long-term plans for growth are robust, sustainable and achievable. We will continue to build on our successes and maintain our position, none of which would be possible without the support of our investors, clients, suppliers and strategic partners.

I would like to thank each and every one of you for your unceasing commitment and I eagerly look forward to sharing Tabreed's achievements with you in the years to come.

Chairman, Tabreed

4	Annual Report 2021 | 5

2

6	Annual Report 2021 | 7